AMERICAS GOLD AND SILVER CORPORATION ANNOUNCES UPSIZE OF PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT OF SUBSCRIPTION RECEIPTS TO C$45 MILLION
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) has upsized its previously announced private placement of subscription receipts to C$45 million. The company will now issue 112,500,000 Subscription Receipts at C$0.40 per receipt. An additional option to purchase up to 12,500,000 Subscription Receipts could increase the total gross proceeds to C$50 million.
The proceeds will be used for growth initiatives at the Galena Complex, payment of cash consideration to Sprott, repayment of existing debt, and working capital. The offering is expected to close around October 30, 2024, subject to regulatory approvals. Each Subscription Receipt will entitle the holder to one common share of Americas upon satisfaction of certain conditions related to the acquisition of the remaining 40% interest in the Galena Complex.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) ha aumentato il suo precedente collocamento privato di ricevute di sottoscrizione a 45 milioni di dollari canadesi. L'azienda emetterà 112.500.000 Ricevute di Sottoscrizione a 0,40 dollari canadesi per ricevuta. Un'opzione aggiuntiva per acquistare fino a 12.500.000 Ricevute di Sottoscrizione potrebbe aumentare il totale dei proventi lordi a 50 milioni di dollari canadesi.
I proventi saranno utilizzati per iniziative di crescita presso il Complesso Galena, pagamento di un corrispettivo in contante a Sprott, rimborso del debito esistente e capitale circolante. Si prevede che l'offerta si chiuda intorno al 30 ottobre 2024, soggetta ad approvazioni regolamentari. Ogni Ricevuta di Sottoscrizione darà diritto al titolare di una azione ordinaria di Americas al soddisfacimento di determinate condizioni relative all'acquisizione del restante 40% di interesse nel Complesso Galena.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) ha ampliado su colocación privada previamente anunciada de recibos de suscripción a 45 millones de dólares canadienses. La compañía emitirá 112,500,000 Recibos de Suscripción a 0.40 dólares canadienses por recibo. Una opción adicional para comprar hasta 12,500,000 Recibos de Suscripción podría aumentar la recaudación total bruta a 50 millones de dólares canadienses.
Los fondos se utilizarán para iniciativas de crecimiento en el Complejo Galena, pago de una contraprestación en efectivo a Sprott, reembolso de deuda existente y capital de trabajo. Se espera que la oferta cierre alrededor del 30 de octubre de 2024, sujeto a aprobaciones regulatorias. Cada Recibo de Suscripción dará derecho a su titular a una acción ordinaria de Americas tras el cumplimiento de ciertas condiciones relacionadas con la adquisición del 40% restante de interés en el Complejo Galena.
아메리카스 골드 앤 실버 (TSX: USA) (NYSE American: USAS)는 이전에 발표된 사모 배치를 확대하였습니다 4,500만 캐나다 달러로. 회사는 이제 112,500,000개의 구독 영수증을 영수증당 0.40 캐나다 달러에 발행할 것입니다. 추가로 12,500,000개의 구독 영수증을 구매할 수 있는 옵션이 있어 총 매출 규모를 5천만 캐나다 달러로 늘릴 수 있습니다.
수익금은 갈레나 복합체의 성장 프로젝트, Sprott에 대한 현금 지급, 기존 부채 상환 및 운영 자금으로 사용될 것입니다. 이 제안은 2024년 10월 30일경에 마감될 것으로 예상되며, 규제 승인을 받는 것이 조건입니다. 각 구독 영수증은 특정 조건을 충족할 경우 아메리카스의 보통주 1주에 대한 권리를 부여합니다.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) a augmenté son placement privé annoncé précédemment de reçus de souscription à 45 millions de dollars canadiens. L'entreprise émettra maintenant 112 500 000 reçus de souscription à 0,40 dollar canadien par reçu. Une option supplémentaire pour acheter jusqu'à 12 500 000 reçus de souscription pourrait augmenter le total des produits bruts à 50 millions de dollars canadiens.
Les produits seront utilisés pour des initiatives de croissance au Complexe Galena, le paiement d'une contrepartie en espèces à Sprott, le remboursement de la dette existante et le fonds de roulement. Cette offre devrait se clôturer vers le 30 octobre 2024, sous réserve d'approbations réglementaires. Chaque reçu de souscription donnera droit à son titulaire à une action ordinaire d'Americas, sous réserve de certaines conditions liées à l'acquisition des 40 % restants d'intérêt dans le Complexe Galena.
Americas Gold and Silver (TSX: USA) (NYSE American: USAS) hat sein vorher angekündigtes privates Platzierungsangebot auf 45 Millionen kanadische Dollar erhöht. Das Unternehmen wird nun 112.500.000 Zeichnungsbelege zu 0,40 kanadischen Dollar pro Beleg ausgeben. Eine zusätzliche Option zum Kauf von bis zu 12.500.000 Zeichnungsbelegen könnte die gesamten Bruttoeinnahmen auf 50 Millionen kanadische Dollar erhöhen.
Die Einnahmen werden für Wachstumsinitiativen im Galena-Komplex, die Zahlung von Barvergütungen an Sprott, die Rückzahlung bestehender Schulden und Betriebskapital verwendet. Es wird erwartet, dass das Angebot rund um den 30. Oktober 2024 schließen wird, vorbehaltlich behördlicher Genehmigungen. Jeder Zeichnungsbeleg berechtigt den Inhaber bei Erfüllung bestimmter Bedingungen zur Erhaltung einer Stammaktie von Americas im Zusammenhang mit dem Erwerb der verbleibenden 40 %-Beteiligung am Galena-Komplex.
- Upsized private placement from C$40 million to C$45 million, with potential to reach C$50 million
- Proceeds to be used for growth initiatives at Galena Complex and debt repayment
- Acquisition of remaining 40% interest in Galena Complex to consolidate ownership
- Potential dilution for existing shareholders due to issuance of new shares
- Increased debt if the Option is exercised fully
Insights
This upsized private placement is a significant development for Americas Gold and Silver The increase from C$40 million to C$45 million, with a potential further increase to C$50 million, demonstrates strong investor interest and confidence in the company's plans. The primary purpose of this financing is to fund the acquisition of the remaining 40% interest in the Galena Complex, which will give Americas full ownership and control of this important asset.
The use of subscription receipts is a strategic move, as it allows the company to secure funding while tying the release of funds to the completion of the acquisition. This structure protects investors and aligns their interests with the success of the transaction. The issue price of C$0.40 per subscription receipt and the potential dilution should be considered in the context of the company's current share price and outstanding shares.
The planned use of proceeds, including growth initiatives at Galena, debt repayment and working capital, suggests a balanced approach to strengthening the company's financial position and operational capabilities. Investors should monitor the satisfaction of the Escrow Release Conditions and the closing of both the financing and the acquisition, as these will be critical milestones for the company's near-term prospects.
The consolidation of ownership in the Galena Complex is a strategic move for Americas Gold and Silver. Full ownership will allow the company to have complete control over operations and decision-making, potentially leading to more efficient management and improved performance. The Galena Complex, located in Idaho, is known for its silver-lead-copper deposits and this acquisition could significantly boost the company's resource base and production potential.
The upsized financing indicates strong market support for this strategy. With
However, investors should be aware that the mining industry faces challenges such as commodity price volatility, regulatory pressures and operational risks. The success of this investment will depend on the company's ability to execute its growth plans effectively and navigate market conditions. The involvement of Eric Sprott, a well-known precious metals investor, as a seller in this transaction adds credibility to the deal but also raises questions about his long-term outlook on the asset.
/FOR DISTRIBUTION IN
The Company is pleased to announce that it has entered into an amending agreement with the syndicate of underwriters (collectively, the "Underwriters") to upsize the Concurrent Financing. In connection with the upsized offering, the Company will issue an additional 12,500,000 Subscription Receipts for a total of 112,500,000 Subscription Receipts at the Issue Price for aggregate gross proceeds to the Company of
Each Subscription Receipt shall entitle the holder thereof to receive, upon satisfaction or waiver of the Escrow Release Conditions (as defined below), without payment of additional consideration, one common share in the capital of
The gross proceeds from the sale of the Subscription Receipts, less certain expenses and fees of the Underwriters, will be deposited and held in escrow pending the satisfaction or waiver of the Escrow Release Conditions by the Company's escrow agent, as subscription receipt and escrow agent under the Subscription Receipt Agreement.
If a Termination Event (as defined below) occurs, the escrowed proceeds of the Concurrent Financing will be returned on a pro rata basis to the holders of Subscription Receipts, together with the interest earned thereon, and the Subscription Receipts will be cancelled and have no further force and effect, all in accordance with the terms of the Subscription Receipt Agreement. For the purposes of the Concurrent Financing and pursuant to the Subscription Receipt Agreement, a "Termination Event" includes: (a) the Escrow Release Conditions having not been satisfied or waived prior to 5:00 p.m. (
The Subscription Receipts will be offered by way of: (a) private placement in each of the provinces of
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high‐growth precious metals mining company with multiple assets in
Technical Information and Qualified Persons
The scientific and technical information relating to the Company's material mining properties contained herein has been reviewed and approved by Chris McCann, P.Eng., Vice President, Technical Services of the Company. The Company's current Annual Information Form and the NI 43‐101 Technical Reports for its mineral properties, all of which are available on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov, contain further details regarding mineral reserve and mineral resource estimates, classification and reporting parameters, key assumptions and associated risks for each of the Company's material mineral properties, including a breakdown by category.
All mining terms used herein have the meanings set forth in National Instrument 43‐101 – Standards of Disclosure for Mineral Projects ("NI 43‐101"), as required by Canadian securities regulatory authorities. These standards differ from the requirements of the SEC that are applicable to domestic
Cautionary Statement on Forward‐Looking Information:
This news release contains "forward‐looking information" within the meaning of applicable securities laws. Often, but not always, forward‐looking information can be identified by forward‐looking words such as "anticipate", "believe", "expect", "goal", "plan", "intend", "potential', "estimate", "may", "assume" and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or performance. Forward‐looking information includes, but is not limited to, the terms and expected timing of the Acquisition and Concurrent Financing,;
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SOURCE Americas Gold and Silver Corporation
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